The Mediterranean shipping company MSC announced the cancellation of six voyages
As freight rates continue to fall, global shipping giant Mediterranean Shipping (MSC) has announced the cancellation of six trans-Pacific routes.
The decline in freight rates was mainly due to weaker demand and a shift in strategy by the carrier alliance, rather than an anticipated earlier adjustment in freight rates. In addition, a significant reduction in the number of empty vessels (from 109 in March to 86 in April) also contributed to the trend.
Faced with the continuing trend of lower freight rates, global shipping giant Mediterranean Shipping (MSC) has taken action. The company recently issued a notice announcing the cancellation of six trans-Pacific routes. The details include:
Week 14 Cancellation of voyage UK514A on Chinook routes linking the Far East to Prince Rupert, Vancouver, Canada and Seattle/Tacoma, USA.
GQ517N from Asia to the West Coast of the United States, GO517N from Orient, GU517W from Asia to the East Coast of the United States, and GN517E from Lone Star.
Week 18 Cancellation of GE518E on the Empire route from Asia to the East Coast of the United States.
On the main east-west trade routes (including trans-Pacific, trans-Atlantic, Asia-Northern Europe and Mediterranean routes), 68 of the 713 scheduled voyages between week 14 (March 31 to April 6) and week 18 (April 28 to May 4) have been cancelled, a cancellation rate of 10 per cent, according to Delulie's data on March 28.
Drury forecasts that the eastbound trans-Pacific route is expected to have the highest cancellation rate in the next five weeks, at 47%, among east-west routes. This was followed by transatlantic westbound routes, with 28 per cent cancelled. Routes from Asia to Northern Europe and the Mediterranean will also face a 25% cancellation rate.
At the same time, Drury predicts that the reliability of shipping schedules will decline in the next five weeks, although the forecast shows that about 90 percent of vessels will still operate as planned.
Despite the challenges, carriers are cautiously trying to increase the Consolidated Rate Increase surcharge (GRI) in April. However, due to increased competition, growing fleet capacity, and temporary capacity absorption issues due to disruptions in the Red Sea, excess capacity remains an urgent problem and rates are likely to continue to face downward pressure.
The decline in freight rates was mainly due to weaker demand and a shift in strategy by the carrier alliance, rather than an anticipated earlier adjustment in freight rates. In addition, a significant reduction in the number of empty vessels (from 109 in March to 86 in April) also contributed to the trend.
Faced with the continuing trend of lower freight rates, global shipping giant Mediterranean Shipping (MSC) has taken action. The company recently issued a notice announcing the cancellation of six trans-Pacific routes. The details include:
Week 14 Cancellation of voyage UK514A on Chinook routes linking the Far East to Prince Rupert, Vancouver, Canada and Seattle/Tacoma, USA.
GQ517N from Asia to the West Coast of the United States, GO517N from Orient, GU517W from Asia to the East Coast of the United States, and GN517E from Lone Star.
Week 18 Cancellation of GE518E on the Empire route from Asia to the East Coast of the United States.
On the main east-west trade routes (including trans-Pacific, trans-Atlantic, Asia-Northern Europe and Mediterranean routes), 68 of the 713 scheduled voyages between week 14 (March 31 to April 6) and week 18 (April 28 to May 4) have been cancelled, a cancellation rate of 10 per cent, according to Delulie's data on March 28.
Drury forecasts that the eastbound trans-Pacific route is expected to have the highest cancellation rate in the next five weeks, at 47%, among east-west routes. This was followed by transatlantic westbound routes, with 28 per cent cancelled. Routes from Asia to Northern Europe and the Mediterranean will also face a 25% cancellation rate.
At the same time, Drury predicts that the reliability of shipping schedules will decline in the next five weeks, although the forecast shows that about 90 percent of vessels will still operate as planned.
Despite the challenges, carriers are cautiously trying to increase the Consolidated Rate Increase surcharge (GRI) in April. However, due to increased competition, growing fleet capacity, and temporary capacity absorption issues due to disruptions in the Red Sea, excess capacity remains an urgent problem and rates are likely to continue to face downward pressure.
